The two companies have now executed a licence agreement for the development and commercialisation of the drug for the prevention and treatment of hepatocellular carcinoma and non-oncology indications globally.

Medigen is listed on the Taiwanese exchange and is focused on developing new therapeutics for liver diseases and cancers.

Progen's collaboration with Medigen goes far back, with Progen having licensed the worldwide oncology rights of PI-88 to Medigen in 2010.

Under this new licencing agreement, Progen will retain the rights for all other oncology indications for PG545.

The company has already received a A$400,000 upfront payment and will receive further milestone payments from Medigen during the development phase and royalty payments from sales.

Progen Pharmaceuticals held $4.2 million in net assets and cash at the end of December 2012.

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